<article><p class="lead">China's steel exports during January-February rose by 29.8pc from a year earlier to 10.14mn t with a recovery in global steel demand and competitive Chinese steel prices. </p><p>China's general administration of customs released combined January and February data to smooth out the effect of the lunar new year holiday that typically falls during the period.</p><p>The monthly average of 5.07mn t compares with 4.85mn t in December last year. </p><p>Most January-February steel export shipments were spot orders taken in November and December last year when prices in China and overseas markets were on an upwards trend during a post-Covid 19 recovery. Shanghai rebar ex-warehouse prices assessed by Argus rose by 660 yuan/t ($101/t) to Yn4,470/t from 2 November to 31 December. The rebar fob Zhangjiagang index assessed by Argus increased by $131/t or 27.6pc to $606/t fob theoretical weight during the same period. Despite the sharp price gains, China's steel export prices were still lower than prices from other major exporting countries. Steel rebar fob Turkey price assessed by Argus increased by $186.50/t or 41.6pc to $635/t fob actual weight from 2 November to the end of last year. </p><p>China's exports may increase further this month, with more steel mills relying on export sales as domestic trade weakened in January ahead of the lunar new year holiday during 11-17 February. Exports in April and May are likely to fall as domestic steel demand picked up this month with a seasonal rebound in construction steel consumption in China. The strong demand and bullish market expectations pushed Shanghai rebar ex-warehouse prices up to Yn4,750/t on 3 March, the highest level since Argus launched the price series in April 2018.</p><p>"Current Chinese rebar export prices are $25-30/t higher than Turkey prices and Chinese mills have shown little interest in exporting," said a buyer in Singapore.</p><p>China's steel imports were up by 17.2pc from a year earlier to 2.39mn t for January-February. Its 2020 imports rose by 64.4pc from 2019 to 20.23mn t.</p></article>
